​New contracts position Horizon North for growth in 2019 despite market slump

Image: Horizon North Logistics

New camp contracts in the oilsands, Montney/Duvernay plays and supporting LPG exports in B.C. have positioned Horizon North Logistics for earnings growth next year despite a broader market slowdown, according to analysts with GMP FirstEnergy.

Horizon North announced three new awards for its camps and catering business last week.

In the oilsands region south of Fort McMurray, the company’s partnership with the Chipewyan Prairie Dene First Nation was awarded a 36-month contract for hospitality and janitorial services at an existing facility.

The agreement is a notable achievement for the Sekui Limited Partnership and “continues to confirm the belief of Horizon North and our customers that strong relationships with the Aboriginal communities who call our operating regions home are vital,” CEO Rod Graham said in a statement.

Near Prince Rupert, B.C., Horizon North won a new contract for a 150-bed camp to support development of an LPG export terminal. The deal includes ongoing catering and hospitality services.

In the Montney play near Grande Prairie, Alta., the company has been awarded an extension of a contract for continued turn-key camp services in the Wapiti area.

“These announcements support our view that Horizon is poised for significant year-over-year growth in 2019 in a flat-to-down Canadian oilfield market,” GMP FirstEnergy analyst Ian Gillies wrote on Friday.